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Great Lakes

Great Lakes

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Published by: msebony22 on May 11, 2011
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Great Lakes: Great Decisions Perform an analysis of the Social/Demographic, Technological, Economic,

Environmental/Geographic, and Political/Legal/Governmental segments to understand the general environment facing Great Lakes. Describe how Great Lakes will be affected by each of these external factors. Social /Demographic Segments: Being that they are going to be affecting different Social and Demographic areas it will be extremely important that they make the right decisions. Socially it will affect how the people of different cultures use the products and how it affects their health and safety. The demographics are in place as they are the underdeveloped countries who are mostly using the TEL. Great Lakes will be affected by the limitations they have in helping these people in the regions that they produce for. Technological Segments: The technological aspects that affect Great lakes are really not the issue for them. The issues come from the underdeveloped countries not being able to successfully produce unleaded gasoline. Maybe if they were to work in conjunction with these underdeveloped countries on the technology they may be able to not only help those countries, but also Great lakes themselves. Economic Segments: Economically, Great Lakes will ultimately be affected. They

eventually will have to surrender to the health and safety issues and stop or limit production of the additives. By doing this they will see a drop in profitability for a while, but eventually will probably do better in the long run. This will have an effect on the countries that still use leaded gasoline and do not have the resources to produce the unleaded gas.

They are facing tough challenges from the environmentalist.S. They are receiving pressure to do the right thing and do it in a timely manner. the stricter government regulations will eventually drive Great lakes into stopping or significantly reducing the production of TEL.CASE 11 ³GREAT LAKES: GREAT DECISIONS´ 2 Environmental/ Geographical Segments: The environmental issues that are in front of them are significant. . Politically the bad press will eventually lead to the legal changes in the production of the additives. Political/Legal/Governmental Segments: On top of the environmentalist. Now they are the main supplier to the underdeveloped countries. Economically the affects that the environmentalist will have on the lead additive will probably be the largest factors. Describe the impact of each of the five forces on the industry and based on this analysis. using the Five Forces of Competition Model. The environmentalists are going to have a huge effect on the future of Great Lakes. They could try and globalize to make efforts more effective in these other countries. determine if the industry is attractive or unattractive. Threat of New Entry: At this time I do not see any threats of new entry because Great Lakes already do 90% of the business for additives. Power of Supplier: Great Lakes is the supplier and there acquisition n of Octel solidified their supplier. Analyze the lead additives industry in the U. Power of the Buyers: The buyers are the underdeveloped countries with not much power due to the fact that they can produce the unleaded gasoline. but think that it may open up another can of worms. Great Lakes will not have much choice I the matter as time goes on. They will put enough bad press out there to change legislation and ultimately affect the amount of additives that Great Lakes are able to produce. Geographically they are limited as they are based here in the United States and production and manufacturing is based here.

By doing this they would take out the enormous need for Great Lakes additives and effectively take away their profitability. Rivalry among Existing Competitors: There is no rivalry at this time because Great Lakes really do not have any competitors. there is not an immediate threat to Great Lakes additive business. and invisible competitors are and how Great Lakes measures up against these competitors. Describe who Great Lakes¶ immediate. They kind of rule the roost so to say. . If it were a company who had the capability to help the other countries produce unleaded gasoline then I might say yes it is attractive. Until these other countries can substantially produce the unleaded fuel. Ultimately I do not see this as an attractive industry to jump into. but again I say that they would have to have some large capital and be willing to invest in the underdeveloped countries producing unleaded gasoline.CASE 11 ³GREAT LAKES: GREAT DECISIONS´ 3 Threat of Substitutes: There is the threat of substitutes because of the production and use of unleaded fuel. impending. Describe the main capabilities of Great Lakes. so why would a company want to enter themselves into the fire pit. Great Lakes do not really have any immediate competitors. There is always an impending and invisible competitor. Great Lakes are on top of their game as far as the leaded gas additives go and I don't foresee anyone knocking them off of it anytime soon. There is enough bad press going on about the additives. They are free reign right now unless someone else come in and redesigns the wheel and is able to economically show underdeveloped countries how to produce unleaded gasoline substantially. but in that sense it is not really the same business.

They have the foundation and stronghold to keep producing the additive without competing business. but do see them trying to limit its production and use. With the ever changing world and economy. . They have the capability to sway the market either direction and probably continue to sell the additives for as long as they want. it would be detrimental for Great Lakes to change completely to comply with the environmentalist. They have the capabilities ultimately to affect change in the industry and also bring about better health and safety in other regions of the world. I do not see them completely shutting down the production and uses of TEL. They are though using their capabilities to try and work with environmentalist and Government to make the change to unleaded gasoline only. They would see huge decreases in profits and would have to lay off workers which would only add to the unemployment rates.CASE 11 ³GREAT LAKES: GREAT DECISIONS´ 4 The main capabilities of Great Lakes are that they have the stronghold on the additive and leaded gasoline market. They are the supplier and the producer of these products and control that aspect of the businesses.

Strategic management: Competitiveness and globalization. (2011). OH: SouthWestern Cengage Learning. Ireland. concepts and cases: 2011 custom edition (9th ed. M. A..CASE 11 ³GREAT LAKES: GREAT DECISIONS´ References 5 Hitt. Mason.).. & Hoskisson. R. . R. D. E.

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